Fed QE taper fears drag down MCX Gold futures

MCX Gold futures fell in the domestic market on Yesterday as investors and speculators exited positions in the precious metal tracking weak cues from the overseas market as robust US data signaled a pickup in the world’s biggest economy, boosting the case for the US Federal Reserve to start tapering its USD 85 billion monthly bond buying program from next month, dimming the appeal of the bullion, which is a hedge against the inflationary risk of monetary stimulus. Data on Thursday showed an unexpected decline in the number of Americans filing for jobless benefits and a faster expansion in the US economy in Q2, reducing the need for record stimulus.
Gold futures for October 2013 contract, at MCX, closed at Rs. 29,865 per 10 grams, down by 1.16 per cent after opening at Rs. 30,156, against the previous closing price of Rs. 30,215. It touched an intra-day low of Rs 29,757

MCX Crude oil futures weighd on Easing Syria fears

MCX Crude oil futures ended lower in the domestic market on Yesterday as the five permanent members of the UN Security Council which include the US, UK, Russia, France and China reached a deal to make Syria surrender its chemical weapons, easing concerns over a US military strike against the country, tempering fears over a disruption of crude supplies from the Middle East. However, robust US data signaled a pickup in the world’s biggest economy, brightening the demand outlook for crude oil, curbing losses in the fuel. The number of Americans who filed for jobless claims fell by 5,000 to 305,000 last week, signaling an improving labour market recovery. 

MCX Copper futures Lifted by Upbeat US economic data

MCX Copper futures rose in the domestic market on Yesterday as investors and speculators booked fresh positions in the industrial metal after a report showed that the world’s biggest economy expanded at a faster pace last quarter , bolstering the demand outlook for the base metal. The US economy expanded at an annualized pace of 2.5 per cent in Q2 2013 from the previous quarter underpinned by higher consumer spending. Jobless claims in the US unexpectedly fell last week, signaling an improving labour market recovery. However, a decline in the number of Americans signing contracts to buy previously owned homes signaled a cooling housing market recovery, clouding the demand outlook for the industrial metal, trimming gains in copper futures. The gauge measuring pending home sales fell 1.6 per cent in August 2013 from the previous month. 

MCX Natural Gas futures end lower on downbeat stockpiles data

MCX Natural Gas futures closed lower in the domestic market on Yesterday as investors and speculators exited positions in the energy commodity after a report showed that US gas stockpiles rose more than estimated last week, signaling weakening demand for the fuel in the world’s biggest economy. US natural gas stockpiles rose 87 billion cubic feet to 3.386 trillion cubic feet last week, the US Energy Information Administration (EIA) said. Analysts were expecting a stockpile-build of 79 billion cubic feet last week. 

MCX Silver futures end lower as strong US data raised Fed QE taper fears

MCX Silver futures ended lower in the domestic market on Yesterday as investors and speculators exited positions in the precious metal tracking weak cues from the overseas market as strong US data signaled a pickup in the world’s biggest economy, boosting the case for the US Federal Reserve to start tapering its record easing program, dimming the appeal of the white metal, which is a hedge against the inflationary risk of monetary stimulus. The number of Americans who filed for jobless claims fell by 5,000 to 305,000 last week, signaling an improving labour market recovery. 

MCX Cardamom reverses previous day’s losses; gains as demand picks up

Cardamom prices reversed its previous day’s losses, rising by 0.50 per cent on Today at the Multi Commodity Exchange (MCX) on account of good buying support from both exporters and upcountry buyers and also on hopes of improved export demand. At MCX, Cardamom futures for September 2013 contract were trading at Rs. 710.10 per kg, up by 0.50 per cent, after opening at Rs. 704.20 against the previous closing price of Rs. 706.60. It touched the intra-day high of Rs. 715.Prices also rose as a result of firm demand in the market against restricted arrivals from producing belts of  Kerala (70 per cent), Karnataka (20 per cent) and Tamil Nadu (10 per cent) are the cardamom growing states in India while about 90 per cent of the produce is consumed within the nation. 

MCX Potato rises for third day on good demand, limited arrivals

Potato prices extended gains, rising for the third day on Today at the Multi Commodity Exchange (MCX) as a result of a rise in the demand in the market in the midst of restricted arrivals from the major producing regions in UP, Punjab, MP and West Bengal. Potato futures for September 2013 contract, at MCX, were trading at Rs 794.30 per 100 kg, up by 0.56 per cent after opening at Rs. 791 against the previous closing price of Rs. 789.90. It touched the intra-day high of Rs. 794.50. Sentiment improved further as the traders enlarged their holdings on account of a surge in the demand for the commodity in the market. 

MCX Crude oil reverses its previous day’s losses; gains on strong global cues

Crude oil prices rose by 1.40 per cent on Today at the domestic markets on supply concerns as the US and UK were ready to take military action against Syria even without UN authorization which in turn may disrupt oil supplies from the Middle East. At the MCX, crude oil futures for September 2013 contract were trading at Rs. 7,450 per barrel, up by 1.40 per cent, after opening at Rs. 7,342 against the previous closing price of Rs. 7,347.Sentiment improved further after Organisation for Economic Co-operation and Development said that Italian Business Confidence rose to a seasonally adjusted 92.9, from 91.8 in the preceding month which further raised the demand outlook for the fuel. However, gains were curbed after US crude oil stockpiles rose 2.99 million barrels to 362 million barrels last week, the Energy Department said indicating that the demand for the commodity in US, world’s largest consumer of crude oil is weak.

Upbeat demand prospects lift MCX Lead futures

Lead prices rose by 1.36 per cent on Today at the domestic markets after INSEE said that French Business Confidence rose to an annual rate of 98, from 95 in the preceding quarter signaling an improving sentiment in the region which raised the demand outlook for the commodity. At the MCX, Lead futures, for the August 2013 contract, is trading at Rs 148.65 per kg, up by 1.36 per cent, after opening at Rs 147.60, against a previous close of Rs 146.65.Sentiment improved further as a result of high demand for the commodity from battery-maker in the spot market in the midst of strong overseas trend. However, gains were curbed due to the surge in the lead stockpiles at the London Metal Exchange (LME) on account of the weak demand for the commodity. LME lead stocks rose by 250 metric tonnes to 186200 metric tonnes as on August 29, 2013.

MCX Zinc rises by 0.51% on declining stockpiles

Zinc prices rose by 0.51 per cent on Today at the domestic markets due to the decline in the zinc stockpiles at the London Metal Exchange (LME) on account of the strong demand for the commodity. LME zinc stocks fell by 4425 metric tonnes to 1010400 metric tonnes as on August 29, 2013. Zinc futures for August 2013 contract, at MCX, were trading at Rs. 128.55 per kg, up by 0.51 per cent after opening at Rs. 128.40 against the previous closing price of Rs. 127.90.Prices also rose after Organization for Economic Co-operation and Development said that Italian Business Confidence rose to a seasonally adjusted 92.9, from 91.8 in the preceding month which further raised the demand outlook for the metal. Major refined zinc exporting countries are Canada, Australia and Rep. of Korea, while major refined zinc importing countries are China, USA and Germany.

Safe haven demand lifts MCX Gold futures

Gold futures were trading higher in the domestic market on Today as rising speculation of an imminent military strike by Western nations on Syria boosted the safe haven demand for the precious metal. The US along with allies was preparing to launch a military strike on Syria as western nations condemned the use of chemical weapons against civilians by the country’s government. Investors are concerned that the conflict in Syria may escalate and spread across the Middle East region, inviting caution and boosting safe haven inflows into gold. A slump in pending home sales in the US signaled a cooling housing market in the world’s biggest economy, boosting the case for the Federal Reserve to maintain its stimulus program next month, improving the demand outlook for the bullion, a hedge against the inflationary risk of monetary stimulus. Gold futures for October 2013 contract, at MCX, were trading at Rs. 33,668 per 10 grams, up by 0.79 per cent after opening at Rs. 33,564, against the previous closing price of Rs. 33,405. 

Syria fears bolster MCX Crude oil futures

Crude oil futures surged in the domestic market on Thursday amid rising speculation of a Western military strike in Syria, raising concerns over disruption in oil supplies from the Middle East. Speculation of an imminent attack by the US along with other Western allies on Syria boosted oil prices. The US and UK, which are working to define the objectives of a military strike on Syria, said that they were ready to take military action against the country even without UN authorization. Investors are also eying the US Q2 GDP figures and jobless claims data later today which may signal upbeat health of the world’s biggest economy, lifting the demand outlook for the fuel. At the MCX, Crude Oil futures, for the September 2013 contract, is trading at Rs 7,424 per barrel, up by 1.05 per cent, after opening at Rs 7,342, against a previous close of Rs 7,347. 

MCX Potato extends losses; falls for second day on low demand

Potato prices extended losses, falling for the second day on Today at the Multi Commodity Exchange (MCX) as traders offloaded their positions due to low demand in the domestic markets in the midst of adequate stocks. Potato futures for September 2013 contract, at MCX, were trading at Rs 781 per 100 kg, down by 0.26 per cent after opening at Rs. 788 against the previous closing price of Rs. 783. It touched the intra-day low of Rs. 780 till the trading. Sentiment weakened further as a result of easy availability in the physical markets following fresh arrivals from producing regions in UP, Punjab, MP and West Bengal. The major potato markets in UP are Agra, Hathras, Kanpur, Meerut, Farrukkhabad; Jalandhar, Ludhiana, Phul and Patiala in Punjab; Ujjain, Indore and Dewas in MP and Hoogly, Burdwan and Howrah in West Bengal.

MCX Zinc rises by 2.32% on upbeat German Ifo data

Zinc prices rose by 2.32 per cent on Today at the domestic markets after German research institute, Ifo said its Business Climate Index rose to a seasonally adjusted 107.5 in August from a reading of 106.2 in July signaling an improving sentiment in the region which raised the demand outlook for the commodity. Zinc futures for August 2013 contract, at MCX, were trading at Rs. 128.15 per kg, up by 2.32 per cent after opening at Rs. 126.15 against the previous closing price of Rs. 125.25. It touched the intra-day high of Rs. 128.40 till the trading.However, gains were curbed due to the surge in the zinc stockpiles at the London Metal Exchange (LME) on account of the weak demand for the commodity. LME zinc stocks rose by 1275 metric tonnes to 1024850 metric tonnes as on August 27, 2013. Major refined zinc exporting countries are Canada, Australia and Rep. of Korea, while major refined zinc importing countries are China, USA and Germany.

MCX Copper rises by 1.47% on strong demand prospects

Copper prices rose by 1.47 per cent on Today at the domestic markets after the gauge measuring business activity in the Dallas Fed region improved to 5 this month from 4.4 in July signaling an improving sentiment in the region which raised the demand outlook for the commodity. At the MCX, copper futures for August 2013 contract were trading at Rs. 480.85 per 1 kg, up by 1.47 per cent, after opening at Rs. 473.90 against the previous closing price of Rs. 473.90. It touched the intra-day high of Rs. 485.50 till the trading.Sentiment improved further after China’s statistics bureau said that the nation’s economy was showing signs of stabilization due to a rebound in overseas demand and is set to achieve the 7.5 per cent economic growth target for this year which further raised the demand outlook for the metal. However, gains were curbed due to the surge in the copper stockpiles at the London Metal Exchange (LME) on account of the weak demand for the commodity. LME copper stocks rose by 12125 metric tonnes to 576350 metric tonnes as on August 27, 2013

Lead reverses its previous day’s losses; rises on falling stockpiles

Reversing its previous day’s losses, lead prices rose by 2.01 per cent on Tuesday at the domestic markets due to the decline in the lead stockpiles at the London Metal Exchange (LME) on account of the strong demand for the commodity. LME lead stocks fell by 1325 metric tonnes to 186525 metric tonnes as on August 27, 2013. At the MCX, Lead futures, for the August 2013 contract, is trading at Rs 144.55 per kg, up by 2.01 per cent, after opening at Rs 141.95, against a previous close of Rs 141.70. It touched an intra-day high of Rs 146 till the trading. Sentiment improved further as a result of high demand for the commodity from battery-maker in the spot market in the midst of strong overseas trend.

Gold falls by 1.31% on strong dollar, weak demand outlook

Gold prices fell by 1.31 per cent on Monday at the domestic markets as stronger greenback makes the yellow metal cheaper for those holding other currencies, thus reducing demand. The U.S. dollar index, a measure of the value of the United States dollar relative to a basket of foreign currencies, was trading 0.32 per cent higher at 82.584 on the Inter-Continental Exchange (ICE). Gold futures for August 2013 contract, at MCX, were trading at Rs. 26,666 per 10 grams, down by 1.31 per cent after opening at Rs. 27,000 against the previous closing price of Rs. 27,020. It touched the intra-day low of Rs. 26,662 till the trading. Sentiment weakened further on worries over an early end to Federal Reserve stimulus and fears of a cash crunch in China. Prices also fell on reports that Gold imports are expected to more than halve to about 150 tonnes in the coming July-September quarter against the projected 350 tonnes in the current quarter, due to sluggish demand At the Commodity Exchange (COMEX), gold future for August 2013 delivery traded at US$1,281.7 per ounce, down by 0.80 per cent. It opened at US$1,296.3 against the previous closing price of US$1,292. It touched the intra-day low of US$1,281.2.

New Fund Offers(NFO) From Mutual Fund Houses

SBI MF launches “SBI Debt Fund Series - 366 Days - 30”; NFO to close on June 19

SBI Mutual Fund has launched a new close ended debt scheme named “SBI Debt Fund Series - 366 Days - 30” with maturity period of 366 days from the date of allotment. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The NFO opened for subscription on June 18 and will close today. According to the offer document filed with SEBI, the entry load is nil and since the scheme is planned to be listed on the Stock Exchange or any other exchange, the exit load charge will not be applicable. This suggests that the investors wishing to exit may do so through the stock exchange mode. The minimum application amount is Rs 5000 and in multiples of Rs 1 thereafter. The two options available under the Plan of the Scheme are Growth and Dividend option. The performance of the scheme will be benchmarked against Crisil Short Term Bond Fund Index. Rajeev Radhakrishnan will be the Fund Manager of the scheme. The asset allocation of scheme will be in such a way that the objective of the scheme to provide regular income, liquidity and returns to the investors will be met through investment in a diversified portfolio of debt instruments such as government securities, PSU & corporate bonds and money market instruments. Hence, the scheme will allocate 0 to 100 per cent of the asset in debt and money market instruments.

New Fund Offers(NFO) From Mutual Fund Houses

ICICI Prudential MF launches “ICICI Prudential Fixed Maturity Plan-Series 68-368 Days Plan D”; NFO to close on June 20

ICICI Prudential Mutual Fund has launched a new close ended debt fund named “ICICI Prudential Fixed Maturity Plan-Series 68-368 Days Plan D” with maturity period of 368 days from the date of allotment. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The NFO opened for subscription today and will close on June 20, 2013. According to the offer document filed with SEBI, the entry load is nil and since the scheme is planned to be listed on the Stock Exchange or any other exchange, the exit load charge will not be applicable. This suggests that the investors wishing to exit may do so through the stock exchange mode. The minimum application amount is Rs 5000 and in multiples of Rs 10 thereafter. The two options available under the Plan of the Scheme are Cumulative and Dividend option. The performance of the scheme will be benchmarked against CRISIL Short Term Bond Fund Index. Manish Banthia will be the Fund Manager of the scheme. The asset allocation of scheme will be in such a way that the objective of the scheme to generate income will be met through investment in diversified portfolio of fixed income securities/ debt instruments. Hence, the scheme will allocate 0 to 100 per cent of asset in money market instruments.

Recent Dividend announcement from Mutual Fund Houses

Franklin Templeton MF announces dividend under “Franklin India Prima Fund - Direct Plan”

Franklin Templeton Mutual Fund has declared 50.0000 per cent dividend under dividend payout option of scheme named as “Franklin India Prima Fund - Direct Plan” on the face value of Rs 10 per unit. The record date for the dividend is June 21. The NAV of scheme as on June 17, 2013 was at Rs 37.6208. The investment objective of the open ended equity diversified scheme is to provide long term capital appreciation as primary objective and income as secondary objective. The performance of the scheme is benchmarked against S&P CNX 500 Equity Index and K N Siva Subramanian is the fund manager of the scheme.